Other Than Salary TDS Return Filing AY 2026-27

If your business, firm, company, trust, or professional practice deducted tax from payments other than salary during FY 2025-26, you must report those deductions through a quarterly TDS statement. Form 26Q is generally used for resident non-salary payments, while Form 27Q applies to payments made to non-residents.

This guide explains the Filing of Other than Salary TDS in AY 26-27, including Form 26Q due dates, deposit deadlines, the filing procedure on the Income Tax portal, common errors, and TDS return corrections.

What Is Other Than Salary TDS Return Filing for AY 2026-27?

Other than salary TDS refers to tax deducted from payments such as:

• Contractor and subcontractor payments
• Professional and technical fees
• Commission and brokerage
• Rent
• Interest other than interest on securities
• Purchase of goods, where applicable
• Benefits or perquisites arising from business or profession
• Payments to e-commerce participants
• Certain payments to insurance agents, commission agents, and mutual fund distributors

The deductor reports these transactions in a quarterly TDS statement. For FY 2025-26, the relevant assessment year is AY 2026-27.

The correct form depends on the type of payment and the status of the deductee:

TDS statement	Main purpose
Form 24Q	Salary payments
Form 26Q	Non-salary payments to resident deductees
Form 27Q	Payments other than salary to non-resident deductees
Form 26QB	TDS on sale of immovable property
Form 26QC	TDS on rent paid by certain individual or HUF taxpayers
Form 26QD	TDS on specified payments by individual or HUF taxpayers
Form 26QE	TDS under specified provisions relating to virtual digital assets

Form 26Q filing for FY 2025-26 is therefore relevant when a deductor makes non-salary payments to Indian residents and deducts tax under provisions such as Sections 194C, 194H, 194-I, 194J, 194A, 194Q, and 194R.

Form 26Q TDS Return Due Dates for FY 2025-26

The Form 26Q TDS return due dates for FY 2025-26 are linked to the quarter in which the deduction is made.

Quarter	Period covered	Form 26Q filing due date
Q1	April 2025 to June 2025	31 July 2025
Q2	July 2025 to September 2025	31 October 2025
Q3	October 2025 to December 2025	31 January 2026
Q4	January 2026 to March 2026	31 May 2026

These dates also apply broadly to quarterly TDS return filing for non-salary payments, subject to any specific extension notified by the Central Board of Direct Taxes.

The quarterly TDS statement must include all relevant deductions made during the quarter, including:

• PAN of the deductee
• Date and amount of payment or credit
• Date and amount of TDS deduction
• Date and amount of TDS deposit
• Challan identification details
• Section under which TDS was deducted
• TDS certificate and transaction details, wherever applicable

You can refer to the Income Tax Department’s TDS and TCS compliance resources for current filing facilities and guidance.

Monthly TDS Deposit Due Dates for FY 2025-26

Filing a quarterly return does not replace the requirement to deposit TDS every month. Most deductors must deposit TDS by the 7th day of the following month.

Month of deduction	Normal deposit due date
April 2025	7 May 2025
May 2025	7 June 2025
June 2025	7 July 2025
July 2025	7 August 2025
August 2025	7 September 2025
September 2025	7 October 2025
October 2025	7 November 2025
November 2025	7 December 2025
December 2025	7 January 2026
January 2026	7 February 2026
February 2026	7 March 2026
March 2026	30 April 2026

Government offices follow separate payment procedures. Employers and other deductors should also check whether they qualify for any special rule based on approval or tax-payment status.

Late deposit may result in:

• Interest under Section 201(1A)
• Late filing fee under Section 234E
• Penalty under applicable provisions
• Disallowance of expenditure in certain cases
• Notices and mismatch issues in Form 26AS or the deductee’s tax return

Who Must File Form 26Q?

A person or entity with a valid TAN generally has to file a TDS statement if it deducts tax from non-salary payments.

Common deductors include:

• Private and public companies
• Partnership firms and LLPs
• Trusts and societies
• Proprietorship businesses liable to deduct TDS
• Banks and financial institutions
• Government departments
• Hospitals and educational institutions
• Professionals and business entities required to comply with TDS provisions

A deductor may have to file a nil TDS return where no tax was deducted during the relevant quarter, depending on the applicable compliance requirement and portal functionality. Filing a nil statement can help maintain a clean compliance record, but the deductor should first verify whether a nil statement is required in the specific case.

TDS on Non-Salary Payments AY 2026-27

The TDS rate depends on the nature of the payment, the deductee’s status, the applicable threshold, and whether the deductee provides a valid PAN.

Some commonly used provisions for TDS on non-salary payments for AY 2026-27 include:

Section	Type of payment	Common rate or treatment
194C	Payment to contractors	Generally 1% for individual or HUF contractors and 2% for other contractors
194H	Commission or brokerage	Generally 2%
194-I	Rent	Generally 2% for plant and machinery and 10% for land, building, furniture, or fittings
194J	Professional or technical fees	Generally 10% for professional services and specified payments, with lower rates for certain technical services
194A	Interest other than interest on securities	Rate depends on the applicable provision and deductee
194Q	Purchase of goods above the specified threshold	0.1% in applicable cases
194R	Business benefit or perquisite	Generally 10%
194S	Transfer of virtual digital assets	Generally 1% in applicable cases

These rates should not be applied mechanically. The deductor must check:

• Whether the payment has crossed the statutory threshold
• Whether the deductee is a resident or non-resident
• Whether the payment is covered by a specific TDS section
• Whether the deductee has provided PAN
• Whether a lower or nil deduction certificate applies
• Whether the payee has submitted Form 15G or Form 15H, where legally permitted

If the deductee does not provide a valid PAN, TDS may apply at the rate prescribed under Section 206AA. Higher deduction provisions may also apply in specified cases under Section 206AB, subject to the law applicable to the relevant transaction.

For exact rates and thresholds, use the Income Tax Department’s official TDS rate and deduction information before preparing the statement.

Form 26Q Filing for FY 2025-26: Information Required

Before preparing the return, collect and reconcile the following information:

Deductor details

• TAN
• PAN of the deductor
• Name and address
• Responsible person details
• Assessment year and financial year
• Nature of deductor and branch details, if relevant

Deductee details

• Correct PAN
• Name as per PAN database
• Address, wherever required
• Resident status
• Type of deductee
• Date and amount of payment or credit

Challan details

• BSR code or challan identification number
• Date of deposit
• Challan serial number
• Amount deposited
• Section code
• Allocation of the challan against deductees

Transaction details

• TDS section
• Gross amount paid or credited
• TDS amount
• Date of deduction
• Date of deposit
• Certificate number, where applicable
• Details of lower deduction or nil deduction certificate

A wrong PAN, incorrect challan number, or incorrect deduction date can create a mismatch in the deductee’s Form 26AS and Annual Information Statement.

TDS Return Filing Procedure on Income Tax Portal

The TDS return filing procedure on the Income Tax portal normally involves preparation, validation, upload, and verification.

Step 1: Confirm the applicable form

Use Form 26Q for non-salary payments made to residents. Use Form 27Q when the deductee is a non-resident. Do not include salary transactions in Form 26Q.

Step 2: Download the latest preparation utility

Prepare the statement using an approved TDS return preparation utility or software. The statement must follow the prescribed format and validation rules.

The Protean TDS return preparation utilities provide tools and guidance for preparing e-TDS statements.

Step 3: Enter deductor, deductee, and challan information

Enter each transaction carefully. Match the total TDS reported against the amount actually deposited through the relevant challans.

Check the following before validation:

• TAN is correct
• Financial year is FY 2025-26
• Assessment year is AY 2026-27, wherever the utility requires it
• PAN details are accurate
• Correct TDS section has been selected
• Challan details match the payment records
• TDS has been allocated correctly to each deductee

Step 4: Validate the file

The preparation utility generates a file for validation. The File Validation Utility, commonly called FVU, checks whether the statement meets technical requirements.

If the file contains errors, correct the underlying data and regenerate the file. Do not manually edit a validated file.

Step 5: Upload the validated statement

Log in to the Income Tax e-filing portal using the deductor credentials. Select the relevant TDS filing option and upload the validated statement.

Depending on the available filing channel, the statement may be verified using:

• Digital Signature Certificate
• Electronic verification facilities
• An authorised e-filing intermediary or TDS facilitation centre

Step 6: Save the acknowledgement

After successful submission, save:

• Token number
• Acknowledgement number
• Upload date and time
• Filed statement
• Challan details
• Validation report
• Digital signature or verification record

You can monitor processing and compliance information through the TRACES TDS portal.

How to Verify TDS Statement Filing and Verification for AY 2026-27

TDS statement filing and verification for AY 2026-27 is complete only when the statement is successfully submitted and accepted for processing.

After uploading, verify:

1. Whether the statement status shows successful submission.
2. Whether the token number has been generated.
3. Whether the statement has been accepted or marked for correction.
4. Whether challans have been consumed correctly.
5. Whether any short deduction, interest, late fee, or PAN error has been identified.
6. Whether the deductee can see the credit in Form 26AS after processing.

A return may be uploaded successfully but still contain a data error. Therefore, check the processing status instead of relying only on the initial upload confirmation.

TDS Return Correction for Other Than Salary Payments

A correction statement is required when the original Form 26Q contains an error. TDS return correction for other than salary payments may be necessary in the following situations:

• Incorrect PAN of the deductee
• Wrong challan details
• Incorrect TDS section
• Wrong date of deduction
• Incorrect payment amount
• Short deduction
• Wrong TDS amount
• Duplicate transaction
• Missing deductee record
• Incorrect interest or late fee details
• Challan allocated to the wrong deductee

Correction process

1. Download the relevant consolidated file from TRACES.
2. Import the file into the approved correction utility or software.
3. Select the correction type.
4. Modify only the incorrect records, wherever possible.
5. Validate the corrected file through the FVU.
6. Upload the correction statement.
7. Track the correction status using the acknowledgement or token number.

Certain corrections may also be available through online correction facilities on TRACES. The facility and permitted correction types depend on the nature and status of the statement.

PAN correction

A wrong PAN can prevent the deductee from receiving TDS credit. Correct the PAN only after verifying it against the PAN database and the deductee’s supporting records.

Challan correction

Challan corrections require special care because the challan may already have been matched or consumed. If the correction cannot be completed online, follow the prescribed process through the bank or relevant TDS authority.

Late Filing Fee and Interest

Late filing of a TDS statement can attract a fee under Section 234E at ₹200 per day, subject to the amount of TDS deductible or collectible for that statement. The fee generally continues until the statement is filed.

Interest under Section 201(1A) may apply when:

• TDS was not deducted on time
• TDS was deducted but deposited late

The calculation depends on the specific delay and statutory circumstances. A deductor should reconcile the interest before filing the statement because unpaid interest can affect processing.

Practical Example of Form 26Q Filing

A company pays professional fees of ₹3,00,000 to a resident consultant during August 2025. Assume TDS is applicable at 10%.

• Gross professional fees: ₹3,00,000
• TDS deducted: ₹30,000
• Net payment to consultant: ₹2,70,000
• TDS deposit due date: 7 September 2025
• Reporting form: Form 26Q
• Quarter: Q2 of FY 2025-26
• Form 26Q due date: 31 October 2025

The company must report the consultant’s PAN, payment details, TDS deduction, and challan allocation in the Q2 statement.

If the company enters an incorrect PAN, the consultant may not receive proper TDS credit in Form 26AS. The company should then file a correction statement after obtaining the correct PAN details.

Common Mistakes in Other Than Salary TDS Return Filing

Avoid these errors while completing Other than Salary TDS Return Filing for AY 2026-27:

• Filing Form 24Q instead of Form 26Q
• Reporting a non-resident payment in Form 26Q instead of Form 27Q
• Using the wrong TDS section
• Deducting tax on the wrong date
• Reporting the invoice value instead of the amount on which TDS applies
• Entering an incorrect PAN
• Failing to report lower deduction certificates
• Using one challan for the wrong quarter
• Not accounting for interest and late filing fee
• Filing a correction without downloading the latest consolidated file
• Reporting the same transaction twice
• Ignoring short deduction or challan mismatch notices

Maintain agreements, invoices, payment vouchers, PAN records, deduction workings, challans, and filed statements for future reconciliation.

Frequently Asked Questions

Is Form 26Q applicable to salary payments?

No. Salary TDS is generally reported in Form 24Q. Form 26Q covers non-salary payments made to resident deductees.

What is the due date for the Q4 Form 26Q return for FY 2025-26?

The scheduled due date is 31 May 2026 for deductions made from January 2026 to March 2026.

Can I file Form 26Q after the due date?

Yes, a late statement can be filed, but late filing fee, interest, and other consequences may apply. File the statement as soon as possible and pay the applicable amount.

Is Form 26Q required when no TDS was deducted?

The requirement depends on the applicable compliance rules and the deductor’s circumstances. Where no tax was deducted, verify whether a nil statement is required or advisable for the relevant period.

How can I correct a wrong PAN in Form 26Q?

Download the consolidated statement from TRACES, make the PAN correction through the approved utility or permitted online correction facility, validate the file, and submit the correction statement.

What is the difference between Form 26Q and Form 27Q?

Form 26Q is used for non-salary payments to residents. Form 27Q is used for non-salary payments to non-residents, subject to the applicable TDS provisions.

Does the deductee receive Form 16A for non-salary TDS?

Yes, Form 16A is generally issued for TDS deducted from specified non-salary payments. The certificate is generated through the prescribed system after processing of the TDS statement.

Final Checklist for TDS Return Filing for FY 2025-26

Before submitting your TDS Return Filing for FY 2025-26, confirm that:

• You selected Form 26Q or Form 27Q correctly.
• All resident non-salary transactions are included.
• PAN details match the Income Tax Department’s records.
• TDS rates and thresholds are correct.
• Monthly TDS deposits are complete.
• Challan details are accurate.
• Interest and late fee have been calculated, where applicable.
• The statement passed FVU validation.
• The upload acknowledgement has been saved.
• The statement status has been checked after submission.
• Corrections have been filed for any identified mismatch.

For Filing of Other than Salary TDS in AY 26-27, use Form 26Q for eligible resident non-salary payments, follow the TDS Return Due Dates AY 2026-27, reconcile challans carefully, and complete TDS Statement Filing and Verification AY 2026-27 through the prescribed Income Tax and TRACES systems.